The Plug-In Hybrid Car Fisker

Henrik Fisker quits plug-in car company he founded

Founder of Fisker Automotive and designer of the high-style Karma plug-in sedan leaves, citing differences with company management.

Henrik Fisker has quit as executive chairman of Fisker Automotive, the plug-in hybrid car company he founded in 2007. A dispute with other executives over a survival strategy for the struggling start-up led to his departure.

A former designer for BMW, Ford and Aston Martin, Fisker created the high-style Karma, a $100,000-plus plug-in luxury car with a backup gasoline engine similar to the powertrain of the Chevrolet Volt.

But the company has been beset by problems: It sought investors and infusions of cash to stay afloat. Though the company is based in California, the cars were built by a contract manufacturer in Finland.

Only about 2,500 Karmas have been made, and production has been suspended. Talks reportedly have included Chinese auto companies, including Volvo owner Zhejiang Geely.

The company, in a statement Wednesday, thanked Fisker "for his service and many contributions as Fisker Automotive has progressed from start-up to a fully-fledged global automotive company."

And it added that "Fisker's departure is not expected to affect the company's pursuit of strategic partnerships and financing to support Fisker Automotive's continued progress as a pioneer of low-emission hybrid electric powertrain technology."

Fisker first showed the Karma design at 2008 Detroit auto show and began delivering cars to buyers in late 2011.

Among Fisker's problems:

• In May of 2011, the Department of Energy froze payouts from a $529 million loan it had agreed to give Fisker because the automaker missed deadlines that were part of the deal. Fisker had borrowed about $193 million of the total at the time, much of which had been used for design work. The rest was to have been spent to develop and build a second, less-expensive vehicle — the $55,000 Atlantic sedan — at a refurbished General Motors plant in Delaware.

The loss of funding led to layoffs in California and Delaware and essentially put the Atlantic on hold.

• The company lost its only supplier of batteries for the Karma when A123 Systems filed for bankruptcy protection last fall. That not only affected batteries for new cars but batteries that Fisker says it is owed to replaced defective units that led to a recall of 2012 Karmas last year. A123 has sought to void the Fisker deal.

The sale of most A123 Systems assets, including its plants, to a Chinese company has been approved by the bankruptcy court. Fisker has creditor claims and a lawsuit pending.

• In December, influential Consumer Reports gave the Karma "a failing grade" because of multiple problems with its test vehicle. "The car didn't always run. I cannot recall a vehicle we ever tested that had this many issues, or had to be flat-bedded away," says Jake Fisher, head of auto testing at CR.

• At least two owners reported that their Karmas caught fire while parked, and the Karma was recalled for a potential cooling fan problem that could lead to a fire.

• The company lost 338 new cars that were flooded at a port in New Jersey last fall when Superstorm Sandy struck, including 16 that burned after the saltwater caused a short circuit.

Fisker lost his CEO title about a year ago when he was replaced by former Chrysler and GM executive Tom LaSorda. Then LaSorda was replaced last August by Tony Posawatz, former GM line director for the Chevy Volt.

Fisker's abrupt departure is a shock but not a surprise, said Jack Nerad, executive editor at Kelley Blue Book. "The company has suffered from quality problems, production burps and accusations of political cronyism. Its 'volume' model (the Atlantic) seems stillborn, while the company has run through a laundry list of top executives. ... Now we will see if Fisker can withstand the loss of its namesake."

Related Posts by Category